This from an update yesterday on the Australian dollar from Westpac:
AUD's fall under 0.70 in early January (including the 'flash crash') was not a sign of things to come
- a broad recovery in risk sentiment has helped AUD outperform (slightly) within the G10 this month
- Australia's commodity price basket is about flat.
- If the Fed retains its newly cautious tone and the RBA brushes aside gloomy narratives about Australian growth in early February, then AUD/USD should find support on dips towards 0.7050, finishing Q1 around 0.71.
US-China trade talks remain a wildcard.
